Instagram began its life in 2010 as a modest social platform for sharing photos — a little of last Friday’s party here, an adorable couple picture there. And, of course, a very respectable selection of cats.

Fast-forward for over a decade, and it’s almost impossible to imagine the app without ads, influencers, reels, and branded content. Instagram is more than an image-sharing app — it’s a place to make money.

From sponsored posts to subscriptions, Instagram has all the money-making tricks up its sleeve. Discover the monetization options below and transform your Instagram presence into a profitable business.

What You Should Know to Monetize Your Instagram

You might believe that an Instagram account’s power lies in numbers — the more followers, the better. However, that’s not entirely accurate.

Purchasing 20,000 bots might boost your follower count, but bots can’t engage with your content. What’s the value in sharing content if your audience can’t truly interact with it?

The true power of social media lies in engagement. When followers share your posts, comment frequently, and tag their friends, it can translate into earnings, regardless of whether you have 500 or 500,000 followers.

Each tactic we’ll discuss in this blog post thrives on active human engagement for success.

Before you start making money on Instagram, it’s a good idea to first check your engagement rate. This metric shows you how well your audience responds to your content.

To calculate the engagement rate, add your total interactions (likes, comments, shares, etc.), divide by the total number of posts, then divide by your followers, and multiply by 100.

For reference, a 2-3% engagement rate is considered average, while a 4-6% rate is considered high.

Various tools, including this one from Phlanx, can help you calculate engagement rates. You can also review your engagement in the Insights section of the Instagram app or within the Meta Business Suite.

To improve your engagement rate, you need to figure out what content resonates with your target audience. These blog posts are here to help you get started:

How the Instagram Algorithm Works (And How to Use It to Your Advantage) 10 Engaging Instagram Reels Ideas to Promote Your Business

Now that you understand that an engaged audience is your ticket to monetizing your Instagram account let’s explore your options.

Collaborate with Brands for Sponsored Content

One of the most lucrative methods to monetize Instagram is through sponsored partnerships.

Sponsored content mimics regular editorial content, but instead of featuring your favorite avocado toast, you receive a fee to promote an advertiser’s product on your profile.

Brands love this type of marketing because consumers naturally trust an unbiased third party more than traditional ads. Some influencers even mention some of the product’s drawbacks for authenticity.

There are several ways to connect with brands for partnerships:

Directly reach out to companies you believe align with your brand and offer sponsored content. Use Meta’s native Creator Marketplace. This platform connects creators with brands for sponsored content opportunities. Join influencer marketing platforms such as Tribe, AspireIQ, or Influence.co, where you can connect with brands seeking sponsored content.

When searching for a brand to team up with, choose those that align with your values and your audience’s interests.

When reaching out for partnerships, tailor your proposals to demonstrate how your profile can benefit their brand. Highlight your engagement metrics and past successful collaborations to build credibility.

Finally, always maintain transparency with your audience. Use the appropriate tags like #sponsored or #ad to disclose partnerships. This honesty fosters trust between you and your followers, enhancing your reputation and leading to more partnerships in the future.

Enable Instagram Subscriptions

Instagram Subscriptions is a feature that allows creators to earn a steady income by offering exclusive content to subscribers for a monthly fee.

You can share exclusive content for subscribers through stories, posts, reels, subscriber channels, and highlights.

To qualify for Instagram subscriptions, you must have a professional account with a minimum of 10,000 followers. (Check out other requirements and availability across countries.)

To make the most of this feature, offer unique content that your regular followers can’t access. This could include tutorials, behind-the-scenes clips, or one-on-one interactions.

For example, if you’re a makeup artist, you could offer your subscribers exclusive tutorials and personalized makeup recommendations. Or, if you create comedy skits, consider offering your subscribers bloopers or creating videos inspired by their ideas.

Here are some tips to increase your Instagram subscribers:

Promote your Instagram subscription by highlighting its value. You could even offer a discount or a free trial to attract subscribers! Share sneak peeks of the exclusive content to entice your audience to subscribe. Show your appreciation for subscribers’ support by offering personalized content and cool perks to keep them excited about staying subscribed.

Monetize Reels and Lives with Gifts and Badges

Instagram Gifts is a feature that allows you to earn money from your audience. Whether they’re followers or not, people can show their appreciation by sending virtual gifts on your reels.

To be eligible to earn from gifts, you must have at least 500 followers and live in a country where Instagram Gifts is available.

Followers can buy Stars and use them to send you gifts on Instagram. The platform will then provide you monthly with a revenue share from your reels that received gifts. Every Star you get from fans equals $0.01.

Badges are a similar tool for monetizing your Instagram. They let you earn money when you go live. Consider
using Badges if you frequently host live sessions with many followers attending.

Keep in mind that you need at least 10,000 followers to monetize your Instagram with badges (see other requirements here). Visit your Professional Dashboard to check your eligibility. A "Set Up Badges" button will be visible if you qualify for monetization.

Badges pop up next to someone’s Instagram username during live videos. When supporters buy badges in Live, they stand out in the comments and unlock extra features, like a spot on the creator’s list of badge holders and a special heart during the live video.

To get paid for Instagram gifts and badges, you need to set up a payout account.

Here are a couple of ideas to make the most of Gifts and Badges:

Promote your live sessions in advance. Use countdown stickers in stories to build anticipation. Inform your audience about the content they’ll receive during the live session. Offer valuable content during live sessions. Whether it’s a tutorial, an insider look at your business, or an interactive Q&A, providing value encourages your audience to support you financially. Encourage your viewers to purchase Gifts and Badges as a way to support your content. Give a shoutout and thank those who contribute — this builds a sense of community and appreciation. Share your gratitude through stories or posts. Gifts are one of your fans’ strongest signals about what content they love. Consider that in your content strategy and focus on reels that resonate with your audience.

Earn with Instagram Bonuses

Instagram Bonuses are incentives Instagram offers to creators who meet specific engagement criteria.

Instagram might have special bonus programs for creators, but they’re invite-only and available for a limited time in certain countries. Keep in mind that there’s a bit of randomness involved since they’re testing things out. Plus, since it’s more like a testing phase, the bonus program could wrap up at any time.

Go to your professional dashboard to see if you’ve been invited to try out a bonus program. If there’s no invitation, you’re not part of the test group.

The bonus program is still in test mode, and let’s be real — Instagram can’t pay every creator because it just doesn’t make financial sense. So, don’t count on this alone. Keep an eye out for an invite to the program, but definitely explore other ways to make money on Instagram, too.

Sell Your Merchandise

Merchandising is another powerful strategy for Instagram monetization. This method works best when your followers are heavily invested in your brand and actively support you.

Start by designing merchandise that represents your brand’s identity. Consider what your audience values and create products that align with those interests.

Perhaps you draw comics — why not create products featuring your characters? If you’re a lifestyle creator who gets many questions about your photo or video editing, consider offering photo or video presets for a small fee.

Another great option that suits all kinds of Instagrammers is branded merchandise. Just pop your logo or catchphrase on t-shirts, mugs — anything easy to print — and let your brand shine as the product!

The simplest way to create and sell your branded merch is with print-on-demand services. All you have to do is come up with a design, and the service will print it on a product you choose and ship it to the customer. No upfront costs and no need to handle orders — perfect for creators.

Consider Ecwid by Lightspeed to create your merchandise store. It seamlessly integrates with popular print-on-demand services like Printful and Printify, making it easier than ever to bring your creative ideas to life and start selling.

Plus, Ecwid supports Instagram Shopping, so you can connect your shop to your Instagram business profile, allowing followers to purchase directly from your posts. This seamless shopping experience increases conversion rates.

Sell Your Product or Service

Selling your product or service is another direct way to generate income through Instagram.

Instagram is a great place to sell anything from clothes to furniture, so with the right approach, your business can really thrive on this visually driven platform.

Selling Products on Instagram

If you sell physical products, make sure to set up an Instagram Shop. This feature lets sellers tag products in posts and stories, making it easier for followers to purchase. Plus, having an Instagram Shop gives your business more credibility and trust with potential customers.

One of the easiest ways to set up an Instagram Shop is through Ecwid by Lightspeed. This ecommerce platform provides you with an online store that you can connect with your Instagram page to tag products in your content. Learn more about requirements and setup process in the Ecwid Help Center.

To boost your selling skills on Instagram, take a look at these articles:

How to Sell on Instagram: Complete Guide for Business Owners 6 Easy Steps to Generating Sales with Instagram Stories

Selling Services on Instagram

If you’re thinking about selling services, help your audience by sharing your niche skills through courses or downloadable guides. Whether it’s new languages, healthy eating, photo editing, or whatever your expertise might be, Instagram is the perfect platform to showcase your knowledge and promote your services.

Use your Instagram bio to direct potential customers to your website. You can also use a link-in-bio tool like Linkup to showcase all your links in one place and make it easy for your followers to access them.

Since Instagram Shops don’t allow digital product sales, Linkup is a great workaround. You can use it as a handy landing page for your services and digital products right in your Instagram bio.

Promote Affiliate Products

Affiliate marketing on Instagram involves promoting other businesses’ products and earning a commission for each sale made through your referral link or promo code. The latter is better suited for Instagram, as links can only be placed in your bio.

Consider brands that might be helpful to your audience and see if they have affiliate programs. They probably do! Reach out directly or use services like ClickBank or Amazon’s Affiliate Program to get started. Instagram has its own affiliate program, too.

Choose products you genuinely believe in to maintain authenticity. Your followers will appreciate honest recommendations.

Create engaging content around these products. Use Instagram’s various formats — posts, reels, and stories — to showcase the product in action. Share personal reviews and experiences to build trust with your audience.

Include your affiliate link in your bio or stories. Encourage your followers to use your link, emphasizing the added benefits they gain, such as discounts or exclusive access.

Here’s the Recap on Monetizing Your Instagram

Next time you’re scrolling through Instagram, remember that it’s not just a platform for sharing pictures and videos. It’s also a powerful marketing tool that can help you turn your passion into profit.

Keep in mind that monetizing through Instagram may not happen overnight. It takes time, effort, and consistency to build a solid following. Then, engage with your audience by sharing content that resonates with them.

Once your Instagram account has an active following, it’s time to start monetizing it.

While some options like subscriptions, gifts, and badges work best for creators, businesses can leverage print-on-demand services, set up an Instagram Shop, or partner with influencers for sponsored content.

However, both creators and businesses can tap into a variety of Instagram monetization options to diversify their income streams. Try out different approaches to see what clicks best for you and your audience.

With these tips and tools at your disposal, you can start monetizing your Instagram account and make money doing what you love. So go ahead and give it a try — who knows, maybe one day you’ll be making a living off of those perfectly curated posts!

 

How to Sell on Instagram: Complete Guide for Beginners How to Sell on Instagram Without a Website How the Instagram Algorithm Works 10 Ideas for Creative Product Presentation How to Create a Content Plan for Instagram How to Write Engaging Instagram Captions How to Monetize Your Instagram 10 Free Ways to Get More Instagram Followers How to Change Your Instagram Name What Is The Best Time to Post on Instagram?

The post How to Monetize Instagram: Insights for Businesses and Creators first appeared on Ecwid | E-Commerce Shopping Cart.

For retailers, the holiday season is the pinnacle of business opportunity, with consumers eager to spend generously on gifts and treats for their loved ones.

However, preparing for the holiday season as a business owner is not as relaxing as holiday shopping. How should you strategize promotions to capitalize on this seasonal surge? Which promotional channels are most effective for your store?

If you’re pondering these questions, this blog post is for you. Check out a comprehensive guide to holiday promotion strategies and beyond.

The Holiday Season at a Glance

Maybe you’re still on the fence about maximizing your holiday promotions.

In that case, these statistics might change your mind:

In 2023, the most popular sales events were Cyber ​​Monday and Black Friday. The NRF forecasts that in 2024, winter holiday spending is anticipated to increase by 2.5% to 3.5% compared to 2023. In the US alone, the projected number of Black Friday shoppers is 130.7 million. In 2023, 78% of US consumers intended to shop during the holiday season, a trend mirrored in Canada, Poland, and Germany. In the UK, millennials are expected to be the biggest spenders on Black Friday 2024, planning to spend an average of 188 pounds.

It’s crucial to note that most consumers plan to shop online — a key insight for ecommerce businesses:

Almost 68% of US shoppers and 40% of Canadian consumers said they planned to shop online for Black Friday. Among European consumers, 70% of respondents in Italy plan to shop exclusively online during Black Friday. Similarly, over 50% of the shoppers in Spain and France expressed the same preference.

Clearly, shoppers are spending massive amounts of money during the holiday season. For ecommerce store owners, this is an opportunity to cash in big.

When Should You Plan Your Holiday Promotions?

The short answer is as early as possible.

Traditionally, the shopping season doesn’t truly kick off until late November, following Thanksgiving. However, an increasing number of consumers are beginning their shopping earlier to avoid the seasonal rush and capitalize on Halloween promotions.

In fact, nearly 6 in 10 shoppers start their holiday shopping in October or November.

Starting your promotions in early October is a wise strategy. This ensures that your marketing efforts are fully operational and on time for the year’s biggest sales event — Black Friday.

Bearing this in mind, let’s explore how to effectively plan your holiday promotions.

What Holiday Promotions to Run?

When it comes to holiday promotions, there are a variety of options available to businesses. The key is to select the ones that will best resonate with your target audience and drive sales.

Discounts and Special Deals

One popular option is offering discounts or special deals on products or services. These can take the form of percentage off, buy-one-get-one-free, or other creative offers.

Customers are always looking for ways to save money during the holiday season, so this promotion can attract their attention and encourage them to purchase.

The ecommerce platform you use for your online store typically includes tools for promotions. Ecwid by Lightspeed, for example, offers a robust online store and built-in tools for running various promotions, saving you time.

If you run an Ecwid store, you can schedule your discounts to start and end on specific dates automatically. This makes it easy to plan and saves time on sales setup.

With Ecwid, you can also run a variety of buy-one-get-one-free promotions. Discover the details in this article:

Also: 6 Cool "Buy One Get One Free" Promotions for Online Stores

Gift Cards

Another option for holiday promotions is offering gift cards. This allows customers to purchase a gift card for a certain amount, which they can use for future purchases.

This strategy not only boosts sales during the holiday season but also encourages returning customers to redeem their gift cards in the new year, often spending beyond the card’s value.

With Ecwid, you can seamlessly sell gift cards directly without needing third-party applications.

Free Shipping

Shipping costs can often deter customers from purchasing, especially during the busy holiday season. Offering free shipping as part of your holiday promotion can entice them to buy from you instead of your competitors.

To increase average order value and prevent revenue loss from shipping costs, consider offering free shipping for orders exceeding a specific threshold, such as $50. Here’s how to do that in your Ecwid store.

Inform your customers about free shipping with a promo bar. Here’s how to set it up in your Ecwid store.

Gift Sets and Bundles

Another effective strategy is creating limited-time bundles or gift sets. These curated packages can offer convenience and value for customers who may be struggling with gift ideas.

You can offer a discount on bundles to make them more appealing or create themed bundles for different recipients, such as "Gifts for Parents" or "Gifts for Friends." This can also help increase cross-selling opportunities and encourage customers to purchase multiple items.

In Ecwid, you can create discounted product sets with the help of the apps from the Ecwid App Market, such as Upsell and Cross Sell Product Kit or Product Bundles.

There are also other ways to create product bundles in Ecwid — check them out in the Help Center.

How to Select Marketing Channels for Holiday Promotions

With countless marketing channels available today, how do you determine your primary focus? Which ones can you afford to overlook?

Before selecting a marketing channel, here are some insights you should consider:

Budget

Marketing channels vary significantly in cost. For instance, PPC requires a much larger budget compared to inbound marketing. If your budget allows, paid advertising is recommended. However, if funds are limited, consider "free" methods like social media and content marketing, where your primary investment is time.

Existing Expertise

It’s more effective to concentrate on a channel you already know well rather than spending time mastering a new marketing medium. If you (or someone on your team) excel in PPC, focus on paid ads. If you’re a master of memes, prioritize content marketing on TikTok. If you have a talent for photography, dive into Instagram and so forth.

Audience Demographics

Ask yourself: where are my target customers most likely to be found? For instance, if you sell hearing aids, Snapchat might not yield significant results. Similarly, you can’t ignore TikTok if your target audience is primarily Gen Z. 

Or, if you specialize in selling home decor, product tagging on Pinterest is just what you need.

Product Type

Lifestyle, food, and fashion products thrive on discovery-driven platforms such as Pinterest, TikTok and Instagram. Tech products thrive on blogs, where shoppers can access research and reviews, or YouTube channels that offer comprehensive overviews of tech gadgets.

How to Prepare Your Online Store for the Holiday Promos

Before diving into a full-blown promotional campaign, it’s a good idea to get your business ready for the holiday rush.

Here’s how:

Step 0. Stock Up on Inventory

Few things are more frustrating than executing a successful promotional campaign only to discover you’ve run out of stock and must turn away customers.

Ensure you have enough inventory to handle an increase in sales during the holiday season. Take some time to analyze your sales data from previous years and use it as a guide for how much stock you should order this year.

If possible, consider partnering with suppliers who can provide extra inventory quickly if needed. Also, keep track of popular products so you can prioritize stocking them during the holiday season.

Step 1. Create a Holiday Promotions Calendar

Keeping a clear overview of your promo schedule — knowing where and when they’ll happen — helps you stay organized and ensures you don’t overwhelm your customers by spacing them out nicely.

To get started on your promo calendar:

Create a list of holiday promotions. Identify when your business experiences the highest sales volume and use this insight to pinpoint key holidays. Generally, if your business offers affordable, "impulse buy" items, expect a surge in sales either at the start of the season or right before major holidays. If you sell expensive products, shoppers might hold out until November, anticipating discounts. Compile your promotional materials, such as emails, graphics, banners, and ads, and organize them by holiday. Place all Halloween-themed promos in one folder and Black Friday-themed ones in another. Then, review your graphics and ads to identify any that can be repurposed for multiple holiday campaigns.

It’s good to remember that shoppers often spread their purchases over several days instead of limiting themselves to just one or two days of shopping. Though Black Friday and Cyber Monday are key highlights for your sales promotions, it’s wise to extend promotional efforts throughout the entire holiday season.

Step 2. Ensure Your Website Runs Like Clockwork

This holiday season, the last thing you need is a web host failure or a broken website. Before launching promotions, ensure your website is well-prepared to handle the impending surge in traffic.

Here are some steps you can take:

Improve your website’s loading speed. Slow loading times can lead to potential customers abandoning their carts and looking for alternatives. Test your website on different devices and browsers to ensure it is compatible with various platforms and does not have any technical hiccups. Upgrade to a faster web host. Understand how your provider manages its infrastructure during the holiday rush and ensure it can handle significant traffic spikes. If not, it may be time to consider a change. Make your website mobile-friendly. Smartphones make up more than three-quarters of retail site visits in the US and produce about two-thirds of online shopping orders. Optimizing your website for mobile devices opens up a huge market and boosts your SEO performance, too.

By the way, Ecwid stores are optimized for mobile use and prepared to handle a high volume of shoppers during peak sales events.

Step 3. Establish a Social Media Presence

As an ecommerce business owner, you understand that social media offers a significant opportunity, which remains true during the holiday season.

Gen Zers are more than twice as likely (42%) as average (20%) to buy holiday gifts via social media in 2024, according to research from Basis Technologies and GWI.

Instagram (57%) and Facebook (56%) are the top platforms for buying holiday gifts via social media, followed by TikTok (43%) and YouTube (38%), as stated in the same research.

To fully leverage the benefits of social media, ensure you do the following:

Choose popular social media platforms among your target audience and focus on building a strong presence there. The holiday season is a busy period, so you won’t have time to engage with every platform. Add a link to your website with holiday-themed promotions in your social media bio. Create holiday-specific content, such as gift guides, home decor ideas, or celebration tips, to attract and engage potential customers. This will not only showcase your products or services but also provide value to your audience. Use influencer marketing by partnering with popular social media influencers who align with your brand and target demographic. They can help promote your holiday offerings to their engaged followers. Run targeted ads on social media platforms to reach a wider audience and increase visibility for your holiday deals and promotions.

Step 4. Gather Essential Tools

To run promotional campaigns, you will need to gather some essential tools.

Here are some examples of the tools you might need:

An email marketing tool like Mailchimp to send out all your promotional emails, newsletters, and autoresponder sequences. A landing page tool for crafting holiday-themed promotional pages and capturing leads and sales. If you manage an Ecwid store, you can create such pages in no time. A pop-up tool to capture leads and offer discounts and deals to shoppers. If you run an Ecwid store, look for popup apps in the Ecwid App Market. Analytics software helps you figure out where your traffic and sales are coming from and steers your marketing strategy. Google Analytics is a great free tool. If you have an Ecwid store, check out key store stats in the Reports section.

To Sum Up

The holiday season can be challenging for store owners, yet it also presents incredible opportunities. Maximizing your shop’s profit potential requires hard work, but the rewards are well worth the effort.

Now go out there and earn that holiday money. You can thank us in the new year!

 

A Foolproof Advertising Strategy for the Holiday Season Getting Your E-commerce Store Ready for Christmas and New Years Getting Your Ecommerce Shop Thanksgiving Ready BFCM: 22 Ecommerce Tips for Your Holiday Marketing Campaigns The Essential Guide to Holiday Promotions for Ecommerce Stores 8 Black Friday Pitfalls First-Time Sellers Should Be Aware Of What You Need to Open a Pop-Up Shop This Holiday Season Best Practices For Ecommerce Shipping During The Holiday Season Best Practices for a Successful Holiday Season: 5 Do’s and Don’ts

The post The Essential Guide to Holiday Promotions for Eсommerce Stores first appeared on Ecwid | E-Commerce Shopping Cart.